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Maximum Inventory Manufacturing Model Formula

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The maximum inventory manufacturing model is based on the number of units you expect to sell during the replenishment lead time, and the demand and supply variation. Check FAQs

Q mfg = (1 - \frac{D}{K}) \cdot EOQ ms - Q 1

Q_mfg - Maximum Inventory Manufacturing Model?D - Demand per Year?K - Production Rate?EOQ_ms - EOQ Manufacturing Model with Shortage?Q₁ - Maximum Stock out Manufacturing Model?

Maximum Inventory Manufacturing Model Example

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Here is how the Maximum Inventory Manufacturing Model equation looks like with Values.

Here is how the Maximum Inventory Manufacturing Model equation looks like with Units.

Here is how the Maximum Inventory Manufacturing Model equation looks like.

97.4437 = (1 - \frac{10000}{20000}) \cdot 500 - 152.5563

97.4437 = (1 - \frac{10000}{20000}) \cdot 500 - 152.5563

97.4437 = (1 - \frac{10000}{20000}) \cdot 500 - 152.5563

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Maximum Inventory Manufacturing Model Solution

Follow our step by step solution on how to calculate Maximum Inventory Manufacturing Model?

FIRST Step Consider the formula

Q mfg = (1 - \frac{D}{K}) \cdot EOQ ms - Q 1

Next Step Substitute values of Variables

∴

Q mfg = (1 - \frac{10000}{20000}) \cdot 500 - 152.5563

Next Step Prepare to Evaluate

∴

Q mfg = (1 - \frac{10000}{20000}) \cdot 500 - 152.5563

LAST Step Evaluate

∴

Q mfg = 97.4437

Maximum Inventory Manufacturing Model Formula Elements

Variables

Maximum Inventory Manufacturing Model

The maximum inventory manufacturing model is based on the number of units you expect to sell during the replenishment lead time, and the demand and supply variation.

Symbol: Q_mfg

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Maximum Inventory Manufacturing Model

Demand per Year

Demand per Year is the number of goods that consumers are willing and able to purchase at various prices during a given year.

Symbol: D

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Demand per Year

Production Rate

Production Rate refers to the number of goods that can be produced during a given period of time.

Symbol: K

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Production Rate

EOQ Manufacturing Model with Shortage

EOQ Manufacturing Model with Shortage is the order quantity a company should purchase to minimize inventory cost assuming demand is constant.

Symbol: EOQ_ms

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find EOQ Manufacturing Model with Shortage

Maximum Stock out Manufacturing Model

The Maximum Stock out Manufacturing Model is the maximum capacity of a business to stock goods.

Symbol: Q₁

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Maximum Stock out Manufacturing Model

Other formulas in Manufacturing and Purchase Model category

Go EOQ Manufacturing Model with No Shortage

EOQ m = \sqrt{\frac{2 \cdot C 0 \cdot D}{C c \cdot (1 - \frac{D}{K})}}

Go EOQ Manufacturing Model with Shortage

EOQ ms = \sqrt{2 \cdot D \cdot C 0 \cdot \frac{C s + C c}{C c \cdot C s \cdot (1 - \frac{D}{K})}}

Go EOQ Purchase Model with No Shortage

EOQ p = \sqrt{2 \cdot D \cdot \frac{C 0}{C c}}

Go Maximum Stock Out Manufacturing Model

Q 1 = \sqrt{2 \cdot D \cdot C 0 \cdot C s \cdot \frac{1 - \frac{D}{K}}{C c \cdot (C c + C s)}}

How to Evaluate Maximum Inventory Manufacturing Model?

Maximum Inventory Manufacturing Model evaluator uses Maximum Inventory Manufacturing Model = (1-Demand per Year/Production Rate)*EOQ Manufacturing Model with Shortage-Maximum Stock out Manufacturing Model to evaluate the Maximum Inventory Manufacturing Model, The maximum inventory manufacturing model is based on the number of units you expect to sell during the replenishment lead time, and the demand and supply variation. Maximum Inventory Manufacturing Model is denoted by Q_mfg symbol.

How to evaluate Maximum Inventory Manufacturing Model using this online evaluator? To use this online evaluator for Maximum Inventory Manufacturing Model, enter Demand per Year (D), Production Rate (K), EOQ Manufacturing Model with Shortage (EOQ_ms) & Maximum Stock out Manufacturing Model (Q₁) and hit the calculate button.

FAQs on Maximum Inventory Manufacturing Model

What is the formula to find Maximum Inventory Manufacturing Model?

The formula of Maximum Inventory Manufacturing Model is expressed as Maximum Inventory Manufacturing Model = (1-Demand per Year/Production Rate)*EOQ Manufacturing Model with Shortage-Maximum Stock out Manufacturing Model. Here is an example- 97.4437 = (1-10000/20000)*500-152.5563.

How to calculate Maximum Inventory Manufacturing Model?

With Demand per Year (D), Production Rate (K), EOQ Manufacturing Model with Shortage (EOQ_ms) & Maximum Stock out Manufacturing Model (Q₁) we can find Maximum Inventory Manufacturing Model using the formula - Maximum Inventory Manufacturing Model = (1-Demand per Year/Production Rate)*EOQ Manufacturing Model with Shortage-Maximum Stock out Manufacturing Model.

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Maximum Inventory Manufacturing Model Formula

Maximum Inventory Manufacturing Model Example

Maximum Inventory Manufacturing Model Solution

Maximum Inventory Manufacturing Model Formula Elements

Other formulas in Manufacturing and Purchase Model category

How to Evaluate Maximum Inventory Manufacturing Model?

FAQs on Maximum Inventory Manufacturing Model

Variable Name